A positive result here and things could look really good for Chariot in morocco. Great farm out deal again by management announced yesterday and very happy holding for an exciting year or two hopefully.
As we can all agree, yesterday's news was unexpected and reassuring in a sense that we now know CHAR are very capable of farming out despite hostile market conditions.
Having read the FS, it is mentioned that both Namibia and Mauritania are “Drill ready” in 2014. They then go on to mention that the central Namibian blocks are drill-ready and that "partnering process initiated with the aim of drilling with a partner in 2H 2014, subject to successful farm-out and rig availability".
With regards to Mauritania, they mention that "Resource update in 2H 2014 post interpretation. Partnering process will be initiated for drilling as soon as possible thereafter with anticipated drilling to commence 1H 2015 should this be successful".
My bet is for the next few imminent RNSs to be as follows, in no particular order: - Mauritania CPR update - Tier 2 Namibia farm out w/ drill date announced - Block 2714A renewal (?) - Tier 2 Mauritania farm out w/ drill date announced - Brazil Tier 1 farm out
The first 4 are potential catalysts which may trigger a re-rating. 2014 will be a good year for CHAR.
" The Rabat Deep Offshore licence area is located 50km offshore in water depths ranging from 150m to 3,500m. On reprocessed and interpreted 2D seismic the Company has identified a large, 149km2 four-way dip faulted Jurassic carbonate structure, JP-1, with a gross mean prospective resource potential of 618mmbbls.
The prospect sits adjacent to source rock modelled to be oil generating and is supported by extensive on-block oil slicks, seeps and seismic Direct Hydrocarbon Indicators
Amazing this news 18 months ago on a Friday would have blitzed this SP just shows how skewed this market is.
Larry has assembled a top class group of Geo's who now are getting second opinion thumbs up, this latest is even more substantial as they do want to take any find to production and listening to larry at the AGM this fits nicely with our strategy of find and pass on profit to the stock holders
Great news from Larry, and NO leaks before the news. Firstly this is another endorsement of the strategy. At a minimum it's worth the back costs of circa $13 million but most likely worth the 25% cost of a well carry at $25 million so worth £0.22 per share as an additional value. The principal target is reported to contain 618 million bbls net to chariot of 154.5 million bbls which if discovered Jeffries said is typically worth an npv of $13 per bbl at a $100 oil price, or worth approx £5.90 per share excluding the value of any nearby prospects that would be derisked by such a discovery.
Incredible opportunity for those who can be patient
Is there any company on AIM who can offer such upside from present sp..
Dont forget this is just Morocco, its mindblowing what the rest of the portfolio is worth.
TTF If I had to guess, I would say that there was the outlines of a deal to drill more than one well in Namibia and maybe that has been scaled back to one drill. That's based purely on reading between the lines of Pancontinental's presentations which had Chariot drilling two wells beginning around about now but the latest PCL presentation suggests that an unnamed explorer will probably begin drilling a well at the end of this year. I reckon that's Chariot.
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